Deere, Hitachi Enter New License, Supply Agreements

Deere, Hitachi Enter New License, Supply Agreements
  • Deere & Company DE has agreed with Hitachi Ltd.'s HTHIY Hitachi Construction Machinery to end the Deere-Hitachi joint venture manufacturing and marketing agreements.
  • The companies will enter into new license and supply agreements, with changes to effect on Feb. 28, 2022. The financial terms of the deal were not disclosed.
  • John Deere will acquire the Deere-Hitachi joint-venture factories in Kernersville, NC; Indaiatuba, Brazil; and Langley, British Columbia, Canada.
  • John Deere will continue to manufacture Deere-branded construction and forestry excavators. These locations will discontinue the production of Hitachi-branded excavators.
  • John Deere's marketing arrangement for Hitachi-branded construction excavators and mining equipment in the Americas will end. Hitachi will assume distribution and support for these products.
  • Price Action: DE shares are trading lower by 4.16% at $356.145 on the last check Thursday.

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